If any of the assumptions of perfect competition are violated,
A) supply-and-demand analysis cannot be used to study the industry.
B) graphs with flat demand curves cannot be used to study the firm.
C) graphs with downward-sloping demand curves cannot be used to study the firm.
D) there may still be enough competition in the industry to make the model of perfect competition usable.
E) one must use the monopoly model instead.
D
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Migration of educated individuals from developing- to developed countries is referred to as the
a. survival of the fittest b. demographic transition c. disguised unemployment d. brain drain e. none of the above
If a tariff of $10 has no effect on the world price, the optimal tariff on that product
A) is $10. B) is zero. C) is higher than $10. D) depends upon the amount of government revenue collected.
Aggregate supply shocks are:
A. the result of structural policy actions. B. the result of monetary policy actions. C. inflation shocks or shocks to potential output. D. the result of fiscal policy actions.
If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
